| Chinese economy has entered a new normality from high-speed growth to medium-and low-speed growth,and structural optimization and upgrading of the economy since 2015.At the same time,due to the instability of the international economic environment,Chinese economic downward pressure continues to increase,the difficulty of business operations has led to rising debt default risks,and high leverage has also laid a large risk hazard for the financial system.In response to the potential risks of the market and the sustained and healthy development of the economy,in November 2015,at the eleventh meeting of the Central Financial and Economic Leading Group,General Secretary Xi Jinping proposed the supply-side structural reform for the first time.The main content of supply-side structural reforms is: de-capacity,de-stocking,de-bar,cost reduction and short-boarding.Debt-to-equity is one of the important means for non-financial companies to reduce leverage.Through the implementation of debt-to-equity swaps,it can reduce the leverage ratio of non-financial enterprises,optimize the capital structure of enterprises,help some in line with national industrial policies,have certain influence in the industry,have the potential to turn losses into profits,but because of excessive leverage,temporarily fall into business Distressed enterprises get rid of difficulties and improve their market competitiveness.In October 2016,the State Council issued the:Opinions on Actively and Firmly Reducing the Leverage Ratio of Enterprises.At the same time,it issued the: ‘Guiding Opinions on Market-oriented Bank Debt-to-equity Conversion'.In the form of an annex,and launched Chinese mercerization and legalization as the characteristics.The second round of debt-to-equity swaps is also called the current round of debt-to-equity swaps.This round of debt-to-equity swaps adopts a market-oriented model.The choice of stocks and the conversion of shares are more market-oriented and legalized.The government no longer acts as the main party to provide financial support for debt-to-equity swaps.Therefore,the debt-to-equity swap institutions are more cautious and conservative in selecting the companies that convert the stocks.In the specific method of enterprise selection for debt-to-equity swaps,although the state has made a principled provision on the scope of debt-to-equity swaps,there is no clear standard for the screening indicators of the target of the conversion of shares,which also has the intention to sign debt-to-equity swaps.There are many agreements,but the slow progress in the specific implementation will affect the speed of the supply-side structural reform to a certain extent.This paper takes the TW Group,which is undergoing market debt-to-equity swap,as the research object,and analyzes the operational dilemma and reasons for the formation of the TW Group.From the current industry status,national industrial policy,market demand,the company's own financial status,technical strength,research and development capabilities,production and operation capabilities and debt-to-equity policy requirements,the TW Group has analyzed and researched the TW Group.The necessity and feasibility of implementing debt-for-equity swaps.On 80 the basis of this research,the design proposed the debt-to-equity swap plan proposed by TW Group,and made corresponding design for the specific implementation steps and exit methods of the plan,analyzed the risks and effects of the implementation of the plan,and proposed the smooth implementation of the guarantee plan.Related recommendations.The research results in this paper can form the operation method system for enterprise selection and scheme design of debt-to-equity swaps,and provide some reference for other enterprises;the research conclusions will help to improve the theoretical system of debt-to-equity swaps and help to promote the smooth transition of market-oriented debt-to-equity swaps.The development will play a certain role in boosting the supply-side structural reform. |
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